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Business News/ Markets / Stock Markets/  ONGC shares tumble by nearly 3% post weak Q4 results

The shares of state owned ONGC was down by nearly 3 per cent on Monday in intraday trade on BSE after the firm's consolidated net profit declined 53 per cent to 5,701 crore for the quarter ended March. The profit stood at 12,061 crore in the March quarter of last year.

The company's share declined 2.54 per cent to 159.45 on BSE. On a year-to-date basis, ONGC's share rose by 6.02 per cent.

Its revenue from operations during the reporting quarter rose 5 per cent to 1.64 lakh crore. It was 1.55 lakh crore in the corresponding quarter of last year.

ONGC's consolidated turnover stood at Rs.6,84,829 crore in FY23, compared to 5,31,793 crore in FY22. On a standalone basis, the oil and gas explorer reported a net loss of 247 crore in the fourth quarter, compared to a net profit of 8,859.5 crore in the same period last year.

On the operating front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) during Q4FY23 came in at 20,996.73 crore, down 14.57 per cent year-on-year, over higher cost of material consumed.

The company's board declared a final dividend of 0.5 per equity share of the face value of 5 each (10 per cent) for the financial year 2022-23, upon the approval of shareholders.

Here's what brokerages say:

Motilal Oswal has also given a buy rating with a target price of 165.

ICICI Securities maintained its buy rating on ONGC with a target price of 164.

"Despite the miss in Q4FY23, full-year FY23 earnings were strong with standalone EBITDA / PAT up 44% / 19% YoY. Additionally, we note that, even at a realisation of US$75/bbl for oil and 20-21/scm for gas, standalone and consolidated EPS for FY24E of 40.5/sh and 41.4/sh, respectively, are well above the average EPS for FY22/FY23," it said.

"With full production from KG field to be available by FY25E, our FY25E EPS estimate of 46.4 signifies stronger earnings prospects, even with capped realisations on oil and gas. We believe valuations at 3.5x FY24E consolidated EPS and 2.2x EV/EBITDA remain attractive," it added.


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Updated: 29 May 2023, 02:15 PM IST
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